Reed's, Inc. Offers Up to $718,540 in Registered Direct Financing From Sale of $1.80 Units

Released:10/05/09 06:00 AM EDT

LOS ANGELES, CA -- (Marketwire) -- 10/05/09 -- Reed's, Inc. (NASDAQ: REED) announced today
that it is offering in a registered direct offering up to $718,540 through
the sale of Units at a price of $1.80 per Unit.

Reed's expects to issue up to 189 Units, consisting of 399,189 shares of
Common stock, 159,676 Series A Warrants, 83,444 Series B Warrants and
33,378 Series C Warrants. The Series B Warrants are exercisable at any
time after the closing, at an exercise price of $1.80 per share, and will
expire 60 trading days after the closing. The Series A Warrants and Series
C Warrants are exercisable at $2.25 per share, commencing 180 days from
closing for a term of five years. If the entire offering is placed, the
expected gross proceeds at Closing will be $718,540 and the total aggregate
proceeds if all Warrants are exercised will be $1,303,110. The expected
net proceeds after fees and expenses are estimated to be $621,057.

All of the securities will be offered pursuant to an effective shelf
registration statement. Proceeds from the transaction will be used for
general corporate purposes.

A shelf registration statement relating to the shares of common stock and
warrants issued in the offering (and the shares of common stock issuable
upon exercise of the warrants) has been filed with the Securities and
Exchange Commission (the "SEC") and has been declared effective. This
announcement is neither an offer to sell nor a solicitation of an offer to
buy any of our shares of common stock or warrants. No offer, solicitation
or sale will be made in any jurisdiction in which such offer, solicitation
or sale is unlawful.

SAFE HARBOR STATEMENT

Some portions of this press release, particularly those describing Reed's
goals and strategies, contain "forward-looking statements." These
forward-looking statements can generally be identified as such because the
context of the statement will include words, such as "expects," "should,"
"believes," "anticipates" or words of similar import. Similarly, statements
that describe future plans, objectives or goals are also forward-looking
statements. While Reed's is working to achieve those goals and strategies,
actual results could differ materially from those projected in the
forward-looking statements as a result of a number of risks and
uncertainties. These risks and uncertainties include difficulty in
marketing its products and services, maintaining and protecting brand
recognition, the need for significant capital, dependence on third party
distributors, dependence on third party brewers, increasing costs of fuel
and freight, protection of intellectual property, competition and other
factors, any of which could have an adverse effect on the business plans of
Reed's, its reputation in the industry or its expected financial return
from operations and results of operations. In light of significant risks
and uncertainties inherent in forward-looking statements included herein,
the inclusion of such statements should not be regarded as a representation
by Reed's that they will achieve such forward-looking statements. For
further details and a discussion of these and other risks and
uncertainties, please see our most recent reports on Form 10-KSB and Form
10-Q, as filed with the Securities and Exchange Commission, as they may be
amended from time to time. Reed's undertakes no obligation to publicly
update any forward-looking statement, whether as a result of new
information, future events, or otherwise.